Catapulting a Beverage Company to the #1 Brand
Client Situation
As we began our work with this client, they were the #2 orange juice brand in the US with 34% market share. For the previous three years, they had experienced flat revenues and earnings with no innovation successes. Competitors had introduced successful calcium-fortified juices that were stealing share from them.
Demand Strategy Approach
The Cambridge Group built a Demand Landscape to identify the 3% of consumers who drove 63% of revenue and 68% of profits. We developed new insights into the consumers' key need states and what was most valuable and motivating to them. We determined that our client's core consumers had a strong affinity for the brand beyond just orange juice and, as a result, identified significant opportunities by looking at their entire integrated juice demand rather than just orange juice alone. This new focus led to the identification of several new product opportunities.
Results
- Launched a new premium offer, a calcium offer and several non-orange juice offers
- Increased share every quarter for four years
- Doubled revenues from $1 billion to $2 billion
- Increased earnings fourfold to $240 million
- Overtook the incumbent to become the #1 brand with 43% market share